Shares of Syneos Health (NASDAQ: SYNH), a contract research organization were up in pre-market trading at the time of publishing on Wednesday after the company announced a takeover by a consortium of private investment firm affiliates including Elliott Investment Management, Patient Square Capital, and Veritas Capital for $43.00 per share in cash in a deal valued at approximately $7.1 billion, including outstanding debt.
The purchase price represents a 24% premium to Syneos Health’s unaffected closing stock price on February 13 and the deal is expected to close in the second half of this year.
John Dineen, Chair of the Syneos Health Board of Directors commented, “The Company has a strong operating foundation, differentiated, integrated solutions and a focus on being committed to customers. We believe this transaction will enable Syneos Health to continue to accelerate its growth strategy, enhance customer delivery and evolve the organization toward a tech-enabled future.”
Meanwhile, Syneos also announced its Q1 results with adjusted diluted earnings of $0.75 per share versus $1.01 in the same period last year but above consensus estimates of $0.66 per share. The company posted revenues of $1.36 billion, up by 2.4% on a constant currency basis, beating analysts’ estimates of $1.28 billion.
SYNH stock has tanked by more than 45% in the past year.
